Philipp Ther makes a good point, after the fall of the Berlin Wall in 1989, the forerunners of today's EU wanted to expand eastward and forge deeper integration. "That project worked well until the 2008 crisis, suggesting that the EU might be best suited for good times, not for hard times." He believes the December 4 referendum in Italy and the presidential election in Austria serve as a litmus test for the project's future.While EU leaders can breathe a sigh of relief upon the victory of Alexander Van der Bellen, a strongly pro-European former leader of the Green Party, the political landscape in Austria is fragmented. Although voters rejected Norbert Hofer's bid for presidency, who would have become the first far-right head of state in the post-war era, his populist, nationalist, intolerant, anti-European policies had brought him close to victory in the runoff in May. Apart from the influx of immigrants, Austria's modern history sheds light on the mood of many of its citizens. It was part of Nazi Germany from 1938-1945, and occupied by the Allies after the war, who divided up the country and the capital Vienna into separate sectors. Only the 1955 State Treaty guaranteed Austria's unity, ensuring it did not suffer Germany's fate of breaking up into the Soviet and the Western spheres of influence. In return, Austria declared permanent neutrality, to which it still adheres. Questions surrounding its neutraliy were raised, when two thirds of voters supported EU membership in a 1994 referendum. Although Austria's economy has been a success story since it became a EU member in 1995, many people in rural regions feel being left behind. Empty hotels, closed restaurants. and government red tape such as the smoking ban and EU laws are said to have taken a toll on their livelihoods. Hofer's supporters remind much of Trump's. They fall victims to incendiary rhetoric and vote for a controversial candidate, who said he would have dissolved the parliament that presided over last year’s refugee crisis. Hofer vowed to call a referendum on EU membership if it takes further steps towards integration and hinted he could imagine a plebiscite on reintroducing the death penalty. His presidential defeat will not be the end of his political career and he will continue to stoke fear of social unrest. Matteo Renzi has had an impossible task to reform Italy's sclerotic politic system. His referendum, called for complicated changes to the Italian constitution, including the undoing of "some of his predecessor Silvio Berlusconi’s legacy – a legacy that serves as a prime example of the damage right-wing populism can do to a country." Renzi made a mistake by threatening to resign, should voters reject his referendum. His detractors capitalise on this opportunity to crush him, by making it a confidence vote in the prime minister himself. Voters, instead of helping Renzi repair the damage Berlusconi had done, see his referedum as a dangerous power grab by the ruling Democratic party. Berlusconi had altered the "political system in such a way as to prevent the left from ever gaining full power again, and to block any criminal charges that could be leveled against him." Many Italians see an overhaul of the parliament as unnecessary, refusing to adopt a change in the way senators are elected. They don't believe the proposed reforms would make Italy easier to govern and more stable. Those who support populist parties like the Five Star Movement (M5S) and the Northern League put the blame on the EU and its Euro for their grievances, instead of putting the country' interest ahead of their self-interests. The biggest problem is also the lack of faith in politicians, which undermines the country's stability, making governments unstable. The "No" vote to Renzi's referendum sends the message that Italy doesn’t need a constitutional reform. But how can Italians expect their corrupt politicians to serve the country and the people without Renzi's reforms? Much needs to be done to bring the country's economy back on track. Renzi may soon announce his resignation, and it will be the job of the Italian president, Sergio Mattarella to oversee the cobbling together of a new government. He will likely come under intense pressure to call elections, ushering in another period of uncertainty. Read more

Apparently the correct form is Viva L'Italia. The referendum in italy was a victory for the people of Italy versus the failed ideology of neoliberalism. Renzi was a hard-core (even fanantical) neoliberal. Neoliberalism doesn't work. italians were completely reasonable in voting No. Read more

The neo-liberal construct of the currency union cannot ever work without a central fiscal authority. It's like all 50 states of the USA borrowing like Puerto Rico without any transfer payments or central fiscal authority to help. It will fail it's just a matter of time until a war resolves it or the elites change the system to be more democratic with a central fiscal authority! Read more

The western europeans are possibly switching from fake light mode to true darkness mode, which is a prerequisite to a real metamorphosis or a new start. A metamorphosis of western european identity might be unavoidable, even if not expected nor wished for, because the global influence of the west seems likely to go through the floor. Read more

First we pay for the coups de état, finance their wars, deploy our fancy weapons and use terrorists as proxy infantry.Then we force the refugees and illegal immigrants upon the local taxpayer and in the process destroy our own unsustainable culture. The European political leaders delight in this process. Who do our governments think will accept this as a way of life?This Europe is not worth it. It has to be rebuilt from scratch.

We are right now in a Paranoid Colonial Regime hesitating between two models: Soviet Overregulation and elimination of any civil liberty except those needed to please the Gay Lobbies and........................... the Forthcoming Sharia.

Frankly, this is a disaster. Thanks God the Brits saw it coming and the Swiss as well. They have voted to withdraw their request to become part of the EU.The sooner the better.Read more

"Italy .. is staggering under the massive debt burden inherited from Berlusconi. "No. Italian debt under Berlusconi declined in early 2000s and Berlusconi inherited the massive debt from previous governments, most of it built up in early 90s.

"... 160,000 North African refugees who have arrived...."They are not refugees, but illegal immigrants, and they have not arrived to Europe, but were brought to Europe by Italians Ferry Services, also known as Italian Navy. Read more

Even if Renzi goes, a stop-gap technocrat could be put in. Draghi's fate is more important but there too it is possible to kick the can down the road.Austria does not matter.Even a Le Pen victory isn't a catastrophe. All that needs to do is to scapegoat the more visible migrants in a concerted manner. Europe has done worse in the past. We can pretend all we like that Democracy involves Liberal values but there is simply no evidence this has ever been true.Yes, Europe will have to pipe small in future and send its moral high-horse to the glue factory.It won't be missed. Read more

"Popularists" the slogan used by an oligarchy against democracy, incredible how many times you repeat it. There is a need to be far more critical of other causes of problems in Europe. The incorrect structure of the Eurozone is the most significant, as selective enforcement of inadequate rules, and lack of transfer payments with an explicit link to the Eurozone has caused an inherent downward spiral in Southern Europe. The cause is German supremacism, with that country and a few allies content to play a negative sum game so long as they gain and many lose = with the decades of delay debt write offs are now also needed but not forthcoming. There are therefore strong political and economic arguments against anybody supporting the EU status quo - even with Renzi posturing against Merkel and Hollande over their making decisions without involving other members. Read more

From my POV the idealism that carried the EU seems to be in recession, worldwide. The new trend seems to be subgroup liberation.This trend has a horrible prognosis, as there is reason to assume, that it will again be done mutually ignorant and damaging. This aspect could ideally be avoided to a large extent.Rule of thumb: Subgroup liberation demands fairness and mutual compensation.

"This, too, would be a blow against Europe, because it would mean that any EU legislation – such as policies to disperse refugees now in Italy to other member countries – could be blocked by a plebiscite. "

So "Europe" can only exist as long as democracy is eliminated? That's about right. They don't call it the EuroReich for nothing.Read more

Peter, you want a solution to the migrant problem or as you call them the “illegal migrants”, eliminate the “Magnate”. The “Magnate” for the illegal migrants, other than the open invite of the “beloved” A. Merkel (in the case of the EU), and Obama (in the case of the US), is the “Minimum Wage”. Eliminate the Minimum Wage (and all the perks that are given to the migrants) and you will stop their influx. Based on a US$ 7.5 Minimum Hourly Wage which would equate to US$ 1,050 per month (based on 7 hours a day/ 5 days a week work). A monthly US$ 1,050 (excluding benefits) for some of the migrants would be a whole year earning in their home country. Our dear public representatives and central bankers have been approaching the economic malaise of the last 8 years or so from the wrong end. They should have capped the benefits, wages and perks of the upper end of the echelon, stimulate growth by creating new jobs (from savings achieved from the former), and liberalised the low wages (let the supply and demand forces dictate the low wage). By doing so, one would reduce by a great extend the influx of the refugees, reduce inequality in the workplace and in the society at large and not have anyone earning a salary above the salary of the President of the USA (which currently stands at US$400K), the highest among all worlds heads of states (before Benefits & Perks). Why should X, Y or Z earn millions, if not billions for doing nothing other than promoting his/her self-image and creating a social upheaval in the process? Furthermore, no politician (or public office holder) should be allowed to seek employment, earn direct or indirect income (lecturing, etc.) after leaving office and for a period of no less than 10 years. This should guarantee their loyalty to the electorate and to no one else. Trump…Go for it, if you got the guts. … Read more

Philipp, your article is a bit on the light side. It is too late to do anything now. Too many generations have been left out in the cold and the wilderness and they are coming back with a vengeance. The political and financial leadership have been sleeping for far too long, soon they shall be in a coma. Read more

PS On Air: The Super Germ Threat

NOV 2, 2016

In the latest edition of PS On
Air
, Jim O’Neill discusses how to beat antimicrobial resistance, which
threatens millions of lives, with Gavekal Dragonomics’ Anatole Kaletsky
and Leonardo Maisano of
Il Sole 24 Ore.

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